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2) Reforms to the Discount Rate

Reforms to the Discount Rate last March have also nudged up the price of car insurance premiums.

The Discount Rate, also known as the Ogden Rate, is a calculation used by the courts to determine how much money insurance companies should pay out to people for personal injury claims.

Once a lump sum is calculated the Discount Rate is applied to take into account possible profits from investment.

In March 2017, the government reduced the Discount Rate from 2.5% to -0.75% which led to a sharp rise in the cost of compensation paid by car insurers.

This additional cost was passed on to customers – adding roughly £75 to the average car insurance premium according to PwC.

Although the government had since decided to partially reverse the decision – announcing in September that it would increase the Discount Rate to somewhere between 0% and 1% – it remains to be seen whether this will be passed on to drivers.

For help finding the best car insurance policy, check out our newly released independent car insurance scores.

Which? experts have analysed the standard policies of over 30 car insurance providers and surveyed thousands of policyholders to generate an impartial scores to help you decide which insurer is right for you.

Have a look at our short video for more useful tips on how to find the best car insurance policy.